Is a Tax Cut on Cultural Goods Consumption Actually Desirable? A Microsimulation Analysis applied to Spain*

Proposals for tax cuts on cultural goods represent an ongoing debate in cultural policy. The main aim of this paper is to shed some light on this debate using microsimulation tools. First, we have estimated an Almost Ideal Demand System for 19 different groups of goods, including cultural goods. Expenditure and price elasticities have been obtained from this model. Using this information, three alternative cuts in the VAT rate on cultural goods have been microsimulated and evaluated in terms of revenue and welfare. These types of fiscal reforms will lead to welfare and efficiency gains that can be described as regressive.     

The surprising economics of a "people business"

When people are your most important asset, some standard performance measures and management practices become misleading or irrelevant. This is a danger for any business whose people costs are greater than its capital costs-that is, businesses in most industries. But it is particularly true for what the authors call "people businesses": operations with high employee costs, low capital investment, and limited spending on activities, such as R&D, that are aimed at generating future revenue. If you run a people business-or a company that includes one or more of them how do you measure its true performance? Avoid the trap of relying on capital-oriented metrics, such as return on assets and return on equity. They won't help much, as they'll tend to mask weak performance or indicate volatility where it doesn't exist. Replace them with financially rigorous people-oriented metrics-for example, a reformulation of a conventional calculation of economic profit, such as EVA, so that you gauge people, rather than capital, productivity. Once you have assessed the business's true performance, you need to enhance it operationally (be aware that relatively small changes in productivity can have a major impact on shareholder returns); reward it appropriately (push performance-related variable compensation schemes down into the organization); and price it advantageously (because economies of scale and experience tend to be less significant in people businesses, price products or services in ways that capture a share of the additional value created for customers).     

SCAD: Something new in auditing education

The Simulated Case for Audit Decisions (SCAD) exposes students to audit planning and execution decisions in a realistic environment. Students plan, perform, evaluate, and document a variety of auditing procedures for a hypothetical firm whose records are generated by computer simulation. SCAD experience at 15 Universities has indicated that both instructors and students find it a worthwhile addition to the auditing curriculum.     

The Contribution of Internal Audit as a Determinant of External Audit Fees and Factors Influencing This Contribution

Despite extensive research on the determinants of external audit fees, there is little empirical evidence on the effect of internal audit contribution on the external audit fee. Using a cross-sectional regression model based on prior audit fee research, this study provides evidence that internal audit contribution is a significant determinant of the external audit fee. Further, a second model that provides evidence on the determinants of internal audit contribution is developed and tested. This second model indicates that internal audit contribution is influenced by internal audit quality and, conditional on the level of inherent risk, the availability of internal audit and the extent of coordination between internal and external auditors. These results are based on a unique data-set comprised of publicly available data matched with survey responses from internal and external auditors affiliated with 70 non-financial services Fortune 1000 firms. The sample includes all of the former "Big 6" international accounting firms and clients from twenty-nine different industries.     

Einzelbesprechungen

Ohne ZusammenfassungÜbersetzt von Josef Steindl, WienAus dem Italienischen übersetzt von Erich Allina, Wien     

The Tobin tax proposal : Background, issues and prospects

Less exchange rate volatility facilitates trade, investment and employment, for which, however, substantial international policy collaboration is needed. Tobin's proposal for a small uniform tax on foreign exchange transactions would be an important step, reducing fiscal deficits while discouraging exchange speculation. The fear of hostile reaction from the globalized financial markets makes putting the proposal on the table a more delicate matter for individual governments than for the UN. Doing so would strengthen the UN's claim for a slice of the prospective revenue.     

Improving levels of service through enhanced distribution techniques at Newark Beth Israel Medical Center

In an effort to reduce cost and improve service, Materiels Management Distribution Services, in cooperation with a prime vendor, created a distribution method unique to the needs of Newark Beth Israel Medical Center. The project combined the vendor's expertise and ability to "deliver direct" to an internal hospital location by product group with the distribution staff's ability to complete the process and deliver the merchandise to the final destination in an expedited manner. This article provides a contract template that can be adapted for other collaborative efforts and highlights the components of a successful program: electronic data interchange, verification of usage and par, reconfiguration of space, direct pallet delivery, and some basic indicators of success.     

Asset Trading Volume with Dynamically Complete Markets and Heterogeneous Agents

Trading volume of infinitely lived securities, such as equity, is generically zero in Lucas asset pricing models with heterogeneous agents. More generally, the end‐of‐period portfolio of all securities is constant over time and states in the generic economy. General equilibrium restrictions rule out trading of equity after an initial period. This result contrasts the prediction of portfolio allocation analyses that portfolio rebalancing motives produce nontrivial trade volume. Therefore, other causes of trade must be present in asset markets with large trading volume.     

Finite sample properties of the QMLE for the Log-ACD model: Application to Australian stocks

This paper concerns the properties of the Quasi Maximum Likelihood Estimator (QMLE) of the Logarithmic Autoregressive Conditional Duration (Log-ACD) model. Proofs of consistency and asymptotic normality of QMLE for the Log-ACD model with log-normal density are presented. This is an important issue as the Log-ACD is used widely for testing various market microstructure models and effects. Knowledge of the distribution of the QMLE is crucial for purposes of valid inference and diagnostic checking. The theoretical results developed in the paper are evaluated using Monte Carlo experiments. The experimental results also provide insights into the finite sample properties of the Log-ACD model under different distributional assumptions. Finally, this paper presents two extensions to the Log-ACD model to accommodate asymmetric effects. The usefulness of these novel models will be evaluated empirically using data from Australian stocks.     

Voices unspoken? Understanding how gay employees co-construct a climate of voice/silence in organisations

Abstract

This study aimed to understand how the individual actions of gay employees influence the development of a climate of voice/silence in the workplace. We conducted a qualitative study using semi-structured interviews with male and female homosexuals. The results reveal two types of boundary tactics (micro-level and structural) that our research participants used to promote their ideal level of separation or integration of their personal and professional identities. Our grounded theory demonstrates that whereas structural boundary tactics promote respect and a climate of voice, micro-level boundary tactics soften conflicts in the short term but solidify a climate of silence from a long-term perspective. We also propose that the insufficiency of institutional mechanisms to support gay people’s right to have a voice at work reduce the likelihood that these workers will risk confronting those who attempt to silence them. The originality of this study is based on the fact that it focuses on actions that gay employees can perform to co-construct a climate of voice that positions them as active social actors and not merely passive recipients of organisational and institutional conditions.